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The biggest difference between a DBA and an LLC is liability protection. Under a DBA, there is no distinction between the business owner and the business. The business owner is liable for all expenses incurred on behalf of the business. On the other hand, an LLC provides limited liability protection.
A DBA is an assumed (fictitious) name that an existing business has received approval to use when conducting business. An LLC is a registered business entity. Both options provide a way to operate under a business name other than a companys legal name.
An example of a generic fictional company is the Acme Corporation. Often, when a fictional company is used, it will be a parody of a real world counterpart, which would avoid any unwanted legal issues.
Keep in mind that a DBA isnt a legal entity or tax classificationit simply allows you to operate under a different name. In many cases, businesses with a DBA will need an EIN, though there are a few exceptionsparticularly for sole proprietors and single-member LLCs.
Can you switch from a DBA to an LLC? In most cases, yes. You can register an LLC using your DBA as the new entitys legal business name. This will create a new, distinct entity.